Gadsden city revenues increase

Tuesday

May 29, 2007 at 12:01 AM

By Andy PowellTimes Staff Writer

The city of Gadsden weathered the financial storm of the three-month strike at Goodyear better than had been expected, Mayor Sherman Guyton and Finance Director Lisa Rosser said.According to a financial report given the mayor and City Council this month covering the first seven months of the fiscal year, city revenues are up 2.62 percent from last year.Revenues were up .67 percent from March to April, which Rosser said is encouraging. The report covered the period from Oct. 1 to April 30.The city's general fund budget for this year totaled $43,276,201."I would not have thought that at mid-year our revenue would look this good," Rosser said. "It's better than what I anticipated."City revenues are up $721,157 for the year, according to the report.The city's occupational license fee, a 2 percent tax on wages on jobs located in the city, is less than 1 percent under budget for the year and was up almost 9 percent in April compared to 2006.Rosser said the lower OLF revenues were a direct impact of the Goodyear strike that idled about 1,100 hourly works for three months until they went back to work Jan. 2. City officials had estimated the strike cost the city about $101,000 in direct OLF revenues.Rosser said with the large number of employees involved in the strike at Goodyear, it would have been expected that sales taxrevenues would have declined but that did not appear to be the case."I cannot see at this point where it impacted our sales tax and other areas that you thought it might have," Rosser said.Rosser noted in her report that sales tax collections through April were $11.01 million, up 2.18 percent and 1.55 percent above budget."Our sales tax is fine," she said.Rosser expects at the end of May, all revenue categories should be at or above budget."Overall, I'm pleased," she said. "Would I like it to be better? Sure, but I'm pleased with where it is."Guyton said he is pleased with revenue collections considering the strike at Goodyear and the announced layoffs resulting from the sale of the Tyson plant to Koch Foods.He said revenues are better than he expected."We didn't have to lay anybody off, and we haven't had to cut any city services," Guyton said. "I love it; I'm being honest with you."Considering all the negative things we've had going on, I'm really pleased."Guyton said city revenues will be helped with Academy Sports and Outdoors opening July 13, the Fish Market restaurant opening June 11, Rigid Building Systems' recent opening and NARMCO opening later this year.He hopes those businesses will help offset the job loss at Tyson. The sale of the Tyson plant will result in the loss of about 375 jobs.Tyson officials have talked with the Gadsden-Etowah County Industrial Development Authority about finding parking for about 200 workers who will be offered jobs at Tyson's Albertville plant. Koch has said it will be hiring about 150 people in the next two years.Carl Main, vice president of marketing and advertising for Academy, said the store, the chain's 97th, will employ 120 to 140 full- and part-time employees. The 85,000-square-foot facility, which will be in the former Lowe's building, will be one of the chain's largest stores.Lesa Osborn, executive director of the Gadsden Commercial Development Authority, said Academy officials have projected annual sales of $16 million with 40 percent of that coming from outside the city. She said the Fish Market restaurant will employ about 65.Based on the April OLF increases, Rosser believes OLF will be on budget by the end of May."I think we'll be fine," she said, but added that the loss of jobs at Tyson will hurt.According to Rosser, city revenues traditionally increase during the final four months of the fiscal year, but expenditures in departments, especially in parks and recreation, also increase. Rosser said the rising cost of fuel also will impact city spending.She said because of the Goodyear strike, the city was "very conservative" in preparing the budget.Rosser noted that city expenditures as of April 30 were just slightly over budget, but that departments will need to watch their spending and the city as a whole needs to be "conservative" in its spending for the remainder of the year."They're doing an excellent job of it," she said.

Online Services

Original content available for non-commercial use under a Creative Commons license, except where noted.
Gadsden Times ~ 401 Locust St. Gadsden, AL 35901, Gadsden, AL 35901 ~ Privacy Policy ~ Terms Of Service